Financial Statement Integrity : Corporate Governance and Quality Audit Evidence From Food and Beverage Companies in Indonesia

Abstract

The purpose of this study was to examine the effect of corporate governance and audit quality, corporate governance as proxied by institutional ownership, managerial ownership, audit committees, independent commissioners on the integrity of financial statements in manufacturing companies in the food and beverage industry sub-sector. This study uses a quantitative approach whose research object is taken from a sample of manufacturing companies in the food and beverage industry sub-sector as many as 6 companies during the 4-year observation period in order to obtain 24 observation samples. The analytical method used is multiple linear regression analysis with a significant level of 5%. Based on the results of the study, the multiple linear regression analysis equations are: Financial Statement Integrity = 0.239 – 0.070 Institutional Ownership + 5.371 Managerial Ownership – 0.976 Audit Committee + 4.740 Independent Commissioner – 0.379 audit quality + e. The conclusion of the analysis is partial managerial ownership and independent commissioner affect the integrity of financial statements while institutional ownership, audit committee, and audit quality have no effect on the integrity of financial statements, simultaneously institutional ownership, managerial ownership, audit committee, independent commissioners and audit quality have an effect on the integrity of financial statements. managerial ownership and independent commissioners strengthen their relationship with financial statement integrity and institutional ownership, audit committees, and audit quality weaken their relationship with financial statement integrity. The proxy of corporate governance and audit quality on the coefficient of determination shows the percentage of influence of 83.6%, while the rest is influenced by other variables of 16.4%.

Integrity of Financial Statement Factors: Intellectual Capital, Independent Commissioner, and Company Size

“…Theoretically, a company with a high number of independent commissioners would be subject to more scrutiny, which would reduce the possibility of fraud or data manipulation in day-to-day operations and improve the accuracy and consistency of financial statements (Abbas et al, 2021). According to studies, financial reporting is much more trustworthy when independent commissioners are present (Lesmono & Setiyawati, 2023) and (Marlinda et al, 2022). By efficiently overseeing the financial statement production process, independent commissioners improve the financial statements' accuracy (Annisa & Muslih, 2023).…”

Pengaruh Komite Audit, Komisaris Independen Dan Struktur Kepemilikan Terhadap Integritas Laporan Keuangan

“…Tata kelola perusahaan adalah pedoman bagi manajer untuk mengelola perusahaan sesuai dengan praktik terbaik. Tata kelola perusahaan yang baik terdiri dari komisaris independen dan komite audit (Abbas et al, 2021;Marlinda et al, 2022).…”

“…Sesuai dengan penelitian (Indrasari et al, 2017), bahwa Komisaris Independen berpengaruh positif terhadap kredibilitas laporan keuangan. Begitu juga menurut (Marlinda et al, 2022;Mulyadi et al, 2022;Permatasari et al, 2019;Risma et al, 2014)…”

“…Hasil penelitian ini sesuai dengan hasil penelitian (Abbas et al, 2021;Eyenubo et al, 2017;Marlinda et al, 2022;Mulyadi et al, 2022)…”

“…Laporan keuangan memiliki beberapa karakteristik kualitatif seperti: Relevansi, Keandalan, dan Objektif. Laporan keuangan yang disajikan secara benar dan andal atau menampilkan kondisi suatu perusahaan yang seharusnya menjadi pemahaman atas integritas laporan keuangan itu sendiri (Marlinda et al, 2022). Informasi laporan keuangan dikatakan memiliki integritas yang tinggi apabila dapat mempengaruhi keputusan pemakai dengan memperkuat atau mengubah pengambil keputusan, dapat dipercaya, bebas dari salah saji, menyebabkan pemakai mengandalkan informasi tersebut.…”